The First Bank in Japan, Toyama, is Piloting a Stablecoin that is Pegged to the Yuan
A Japanese bank has gone ahead to take advantage of a ruling that the stablecoins are not part of the crypto. Thus the very first bank of Toyama has gone ahead to launch their project of testing its type of stablecoin. It is referred to as the First Bank Coin, FBC. In October 2019 is when the token will get commercialized which will be pegged to the Japanese national currency at a ratio of 1:1 to the Yuan.
The new stablecoin will first be used within the bank; therefore, the employees of the bank will have the opportunity of using it within the bank headquarters as the means of payment. The employees will also be using the coin for the remittance purposes through a smartphone app.
The Regulation in the Crypto and Stablecoin in Japan
Japan has launched other stablecoins to the market thus the FCB is not really the first in the market. One of Japans largest bank referred to as the Mitsubishi UFJ Financial Bank was able to pilot there stablecoin back in April, the stablecoin was referred to as the MUFG. The coin has been designed to allow the employees to purchase goods in an in-house convenience store easily.
The pilot is currently at an advanced stage; thus the employees are only required to scan the product that they hope to purchase using the MUFG mobile app, and from here the payment will be made automatically.
There is still more developments that has taken place in Japan, in October, the GMO Internet Group, which is one of the largest internet operators, which is among 16 of the licensed crypto exchanges in the market went ahead to unveil their plans to launch a stable virtual currency that has been pegged by the Yuan, this is by the year 2019.
This is not all as the internet giant also claimed that the project has been doing well as several banks around the country gave them the needed support. Just last week, the FSA, Financial Services Authority, which is the top regulator in Japan went ahead to rule that stablecoins are not regarded to be part of the crypto. The FSA also stated that companies will not need to register with any regulations at the time they are issuing the stable coins.
Thus, the Japanese crypto market was given the freedom of being able to regulate themselves, and the ruling that has been made on the stablecoin simply means that these types of coins will need to have their own kind of rules.
While all this was taking place, the value of the largest stablecoin, this is by the market capitalization, tether, experienced a very sharp drop in price over the weekend. The coins are supposedly tied to the US dollar having a ratio of 1:1, which dropped to the levels of $0.95 on Sunday, but it was able to recover to the levels of $0.99.
The Stablecoin Could Be the Holy Grail of the Crypto Market
These coins have been touted to be the holy grail; it is because they have been pegged to be a stable asset, and the price for this coins are insulated from the current volatility that has been able to characterize the Bitcoin. As a result, this has hindered the mainstream adoption to be the trusted store of value and also the appropriate means of payment.